To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A random sample of 39 auditors used the cash-flow information. Their mean assessment was 37.69, and the sample standard deviation was 23.36. For an independent random sample of 39 auditors not using the cash-flow information, the sample mean and standard deviation were respectively 48.72 and 26.64. Test at the 10% level the assumption that the population variances were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis. Assume the populations are normally distributed. To test the assumption that the population variances for assessments of the chance of material fraud were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis, identify the null and alternative hypotheses. Choose the correct answer below. OA. Ho: oso H₁:0² > 0² C. Ho: 0²20² H₁:0² <0² B. Ho: oso H₁:0² <0² D. H₁: o² = 0² 2 H₁:0² #0²

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To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of
midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A
random sample of 39 auditors used the cash-flow information. Their mean assessment was 37.69, and the sample standard
deviation was 23.36. For an independent random sample of 39 auditors not using the cash-flow information, the sample mean and
standard deviation were respectively 48.72 and 26.64. Test at the 10% level the assumption that the population variances were
the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis.
Assume the populations are normally distributed.
To test the assumption that the population variances for assessments of the chance of material fraud were the same for auditors
using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis, identify the null and
alternative hypotheses. Choose the correct answer below.
A.
2
Ho: o so?
H₁:0² > 0²
ő+
OC. Ho: 0²20²
H₁:0² <0²
OB. Ho: oso
H₁:02 <0
OD. H₂:0² = 0²
H₁:02 *0²
Transcribed Image Text:To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A random sample of 39 auditors used the cash-flow information. Their mean assessment was 37.69, and the sample standard deviation was 23.36. For an independent random sample of 39 auditors not using the cash-flow information, the sample mean and standard deviation were respectively 48.72 and 26.64. Test at the 10% level the assumption that the population variances were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis. Assume the populations are normally distributed. To test the assumption that the population variances for assessments of the chance of material fraud were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis, identify the null and alternative hypotheses. Choose the correct answer below. A. 2 Ho: o so? H₁:0² > 0² ő+ OC. Ho: 0²20² H₁:0² <0² OB. Ho: oso H₁:02 <0 OD. H₂:0² = 0² H₁:02 *0²
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